Saudi Arabia to Privatize Water Production, Treatment, Transport, Storage
Saudi Arabia to Privatize Four Water Sector Activities

Saudi Minister of Environment, Water and Agriculture Abdulrahman Al-Fadhli announced that the Kingdom intends to expand the privatization of water production, treatment, transportation, and storage activities. This initiative aims to improve operational efficiency, attract additional investment, and enhance the sector's sustainability.

Key Announcement at Saudi Water Week

Speaking during the launch of the inaugural Saudi Water Week in Jeddah on June 28, Al-Fadhli stated that the National Water Strategy has made enhancing private sector participation one of its key priorities. The water sector in Saudi Arabia has succeeded in attracting foreign investments while achieving strong performance indicators, including reducing the consumption of non-renewable groundwater, increasing desalinated water production capacity, and raising strategic storage capacity.

Massive Investment in Water Infrastructure

Al-Fadhli revealed that Saudi Arabia has invested approximately SR220 billion ($58.4 billion) in developing infrastructure and improving the efficiency of the water system over the past 10 years. This includes more than SR60 billion in foreign investment. The minister emphasized that privatization will improve operational efficiency and attract further investment, with projects in these areas continuing to advance.

Wide Pickt banner — collaborative shopping lists app for Telegram, phone mockup with grocery list

Tangible Performance Improvements

The transformation is reflected in tangible performance indicators. Consumption of non-renewable groundwater fell from approximately 21 billion cubic meters in 2016 to nearly 11 billion cubic meters in 2025. Desalinated water production capacity currently stands at 16 million cubic meters per day, compared with 9 million cubic meters per day in 2016. Safe drinking water is available to 100 percent of the population, while approximately 85 percent of residents are connected to the public water network.

Enhanced Investment Appeal

The water sector has become more efficient and attractive to investors, supported by an integrated institutional framework that maximizes private sector participation throughout the supply chain. Clear regulatory and contractual frameworks, along with expanded public-private partnership models and supporting mechanisms, have attracted investments exceeding SR60 billion. These investments have helped reduce water production costs and improve energy efficiency across the production system.

Water Security Challenges Addressed

UN Secretary-General's Special Envoy on Water Retno Marsudi called for integrating water resilience into national planning, climate strategies, financing mechanisms, and development policies. She emphasized that international cooperation on water is essential to achieving the Sustainable Development Goals and should be better coordinated across UN mechanisms and global platforms.

Mahmoud Abu Zeid, president of the Arab Water Council, stated that water scarcity in the Arab world poses a severe security threat, compounded by rapid population growth, financial constraints, and limited renewable water resources. This affects energy security, food security, and social stability across the region. Abu Zeid predicted a decline of up to 20 percent in renewable water resources by 2030 due to climate change. He called for political will, innovation, and commitment to cooperation and dialogue among all stakeholders to develop pioneering solutions, strengthening the private sector's role and expanding access to financing.

Event Highlights

The inaugural Saudi Water Week in Jeddah features two main events: the 7th Arab Water Forum and the Second Stakeholder Consultation Meeting for the 11th World Water Forum. The event brings together decision-makers, experts, specialists, and representatives of regional and international organizations, as well as government agencies, the private sector, and research institutions. The first day included high-level dialogue sessions involving several Arab water ministers and their deputies, alongside parallel sessions with experts and specialists from Saudi Arabia and abroad.

Pickt after-article banner — collaborative shopping lists app with family illustration